> Need to say, that there is no way to decrypt password.

You don't need the exact same password. You just need any number of the
strings that when encrypted will result in the same bytes as the true
password. Recall that it is encrypted on the client, not the server. Given
this, it shouldn't be any trouble for an algorithm to be designed to create
such a reverse engineering of a suitable password. Either that, or simply
subvert the normal API just enough to get a connection and use the encrypted
bytes verbatim on the wire and you don't even have to do that.

This is why people sniffing can actually defeat IB's security as well.
Encryption just makes it a little more inconvenient, to a hacker, that's
read a little more enjoyable.

FWIW,
Jason Wharton
CPS - Mesa AZ
http://www.ibobjects.com